New homes to be built near rail trail for first-time buyers

A nonprofit group is starting a first-time homebuyer program in the heart of Chambersburg.

Four homes, appraised at about $119,000, are to be built on lots beside the Chambersburg Rail Trail behind the former County Market.

"In Franklin County it's our first effort," said Bonnie Zehler, executive director of Valley Community Housing Corp. "We worked with the borough and wanted to target the 'Elm Street' area. We're shovel ready. Once we're successful here, we're hoping to do it again in other parts of the county."

Officials are scheduled to break ground at 11:30 a.m. on July 16 at Hollywell and West Catherine streets.

The nonprofit has done a good job in recent years of providing affordable rental housing, Zehler said.

The county has affordable rental housing compared to other counties in the region, according to the 2012 Franklin County Prosperity Indicators Report. The county however ranks poorly in affordable home ownership. Nearly 36 percent of families devote more than 30 percent of their income to paying their mortgages. Housing expenditures exceeding 30 percent of household income indicate a housing affordability problem, according to the U.S. Census Bureau.

About two-thirds of the housing in the borough's "Elm Street" area are rentals. The numbers are reversed for the county in general. Nearly three-fourths of families own their own homes.

The Elm Street Program paid about $12,000 to demolish a house and garage on the Valley Community land.

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"Anytime we can partner with an investor to renovate or build to enhance the neighborhood we will," said Jack Jones, manager of the Elm Street Program.

The Elm Street Program offers incentives to property owners in an area covering about 320 acres, generally along Second and Main streets in Chambersburg and extending to the neighborhoods near Southgate.

First-time homebuyers earning up to 80 percent of the median family income may qualify for the homebuyers' program. The qualifying income for a family of four is $50,720 or less.

If the family qualifies for a $90,000 loan from a private lender, Valley Community Housing will hold a "soft" second mortgage for the remainder of the purchase price, according to Zehler. The second interest-free loan will be forgiven over a period of 10 years as long as the homebuyer lives in the house. The mortgage payment in this example would be about $630 a month.

Valley Community Housing connects homebuyers with lenders who are familiar with the program, Zehler said. The nonprofit also can assist in closing costs.

Each two-story home will be built on a .4-acre lot, have a fenced backyard and will be set back from the street. Each will have three bedrooms and one-and-a-half bathrooms.

"We had a seminar in June," Zehler said. "We have 20 families interested. It's going to be first come, first-served -- whoever gets through the mortgage process first. We're selling them a home."

One or two homes are to be built and be ready for sale by Oct. 1, Zehler said. Construction on the others is to start in October or November and be completed by early spring.

Waynesboro Borough Council has expressed an interest in the program, Zehler said.

The Chambersburg program is funded through a $500,000 HOME grant, $60,000 from the Borough of Chambersburg's Community Development Block Grant and $7,000 from the Franklin County Housing Trust Fund.

Borough council approved the development plans in January.

Valley Community Housing grew out of the Franklin County Housing Authority in 2002. It operates the 22-unit Valley Terrace Town Homes in Waynesboro and the 40-unit Sunset Town Homes and Terrace in Greene Township. It's also planning the 40-apartment Wayne Gardens, an affordable-rent complex for seniors in Waynesboro.

If you are interested in the Chambersburg first-time homebuyer program call Valley Community Housing at (717) 263-4200 ext. 135.

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Jim Hook can be reached at 717-262-4759 and jhook@publicopinionnews.com.